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Shocks and Transitions from Career Jobs to Bridge Jobs and Retirement: A New Approach

Author

Listed:
  • John Ameriks

    (The Vanguard Group, Inc.)

  • Joseph Briggs

    (Federal Reserve Board)

  • Andrew Caplin

    (New York University and NBER)

  • Minjoon Lee

    (Carleton University)

  • Matthew D. Shapiro

    (University of Michigan and NBER)

  • Christopher Tonetti

    (Stanford University and NBER)

Abstract

This research provides new empirical evidence on late-life labor market activities of American households from a new survey implemented under the Vanguard Research Initiative. The survey features following innovations: It measures detailed job characteristics not only of a career job but also of post-career bridge jobs; it examines reasons of leaving a career job and whether households would have changed their decisions under counterfactual situations; it examines post-career job search behavior of households. The research finds that, even though a direct transition from a career job to full retirement is still the most common pattern, a significant fraction of older Americans reveal interest in working beyond the career job. Within this sample of older Americans with positive financial assets, 38% of had a post-career bridge job and another 7% of them looked for a post-career employment opportunity. Low health or bad business conditions were the not the main reason for leaving the career job. Yet, for the minority of those who did leave career jobs owing to low health or bad economic conditions, had they counterfactually had better health or economic conditions, they likely would have decided to work longer. Those who work longer on their career job or have a post-career bridge job tend to work fewer hours, have a flexible schedule, and receive lower hourly wages.

Suggested Citation

  • John Ameriks & Joseph Briggs & Andrew Caplin & Minjoon Lee & Matthew D. Shapiro & Christopher Tonetti, 2018. "Shocks and Transitions from Career Jobs to Bridge Jobs and Retirement: A New Approach," Working Papers wp380, University of Michigan, Michigan Retirement Research Center.
  • Handle: RePEc:mrr:papers:wp380
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    References listed on IDEAS

    as
    1. John Ameriks & Joseph Briggs & Andrew Caplin & Minjoon Lee & Matthew D. Shapiro & Christopher Tonetti, 2020. "Older Americans Would Work Longer If Jobs Were Flexible," American Economic Journal: Macroeconomics, American Economic Association, vol. 12(1), pages 174-209, January.
    2. Kapteyn, Arie & Smith, James P. & van Soest, Arthur, 2008. "Dynamics of work disability and pain," Journal of Health Economics, Elsevier, vol. 27(2), pages 496-509, March.
    3. Arthur Van Soest & Arie Kapteyn & Julie Zissimopoulos, 2006. "Using Stated Preferences Data to Analyze Preferences for Full and Partial Retirement," Working Papers WR-345, RAND Corporation.
    4. Ruhm, Christopher J, 1990. "Bridge Jobs and Partial Retirement," Journal of Labor Economics, University of Chicago Press, vol. 8(4), pages 482-501, October.
    5. Bronshtein, Gila & Scott, Jason & Shoven, John B. & Slavov, Sita Nataraj, 2019. "The power of working longer," Journal of Pension Economics and Finance, Cambridge University Press, vol. 18(4), pages 623-644, October.
    6. Nicole Maestas, 2010. "Expectations and Realizations of Work after Retirement," Journal of Human Resources, University of Wisconsin Press, vol. 45(3).
    7. Attanasio, Orazio & Kitao, Sagiri & Violante, Giovanni L., 2007. "Global demographic trends and social security reform," Journal of Monetary Economics, Elsevier, vol. 54(1), pages 144-198, January.
    8. John Ameriks & Andrew Caplin & Minjoon Lee & Matthew D. Shapiro & Christopher Tonetti, 2015. "The Wealth of Wealthholders," NBER Working Papers 20972, National Bureau of Economic Research, Inc.
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    Cited by:

    1. Jeffrey R. Brown & James M. Poterba & David P. Richardson, 2022. "Trends in Retirement and Retirement Income Choices by TIAA Participants: 2000–2018," NBER Working Papers 29946, National Bureau of Economic Research, Inc.

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